SB 1261 - Water project funding

SB 1261 gives cities, water districts, and other political subdivisions more flexible tools to finance large, regional water projects identified in the State Water Plan. It allows qualifying entities to issue long-term bonds—up to 50 years in length—without relying on state debt or taxpayer-backed financing. This extension is designed to ease the cost burden on current ratepayers by aligning repayment schedules with future population growth and water usage. The bill focuses on projects that are already approved and necessary for Texas’s water security. The bill avoids expanding state programs while empowering local self-governance and market-based funding. It protects taxpayers by prohibiting the use of property taxes to repay these debts, and supports long-term infrastructure that ensures reliable and affordable water for future generations of Texans.